HOW DO CRYPTOCURRENCY BUYERS AND SELLERS CONNECT?
Cryptocurrencies over the months are increasingly managing to attract more attention from investors with large and small capitals.
The exchanges of these digital currencies at bitcoins revolution, are setting the standard for financial markets.
Its greatest attraction is the speed and security with which the operations are executed, in addition to the fact that in most cases, they do not have any commissionable costs, unlike traditional banking entities that deduct commissions for each financial operation we carry out.
The functionality of cryptocurrencies
Cryptocurrencies are considered digital assets, in which there are a variety of technical options to acquire, transfer and store these cryptocurrencies. Just as a traditional banking entity would do when keeping track of all the financial operations carried out by its users.
The platforms that use cryptocurrencies do use as a virtual accounting book, called the Blockchain. Unlike the records of traditional banks, where only they and the user know the operations carried out, this digital ledger is public and unalterable, which allows any user of the platform to verify the legality of a specific process.
It is the traditional mechanism for operating cryptocurrencies, but how are exchanges executed? Furthermore, how are these innovative digital currencies bought and sold? Below you will find the necessary information.
Cryptocurrency exchange process
Let’s compare the financial processes executed in banking entities through the various financial products these entities offer. First, we can observe that there will always be an intermediary to validate the transactions carried out.
Unlike the transactions carried out in the Blockchain where only the users intervene, that is, the buyers and sellers, thanks to this technological advance, the intermediaries are eliminated to make the operations simpler.
The blockchain platform can make payments in cryptocurrency and remit it directly to the provider. One of the characteristics that identify the Blockchain is that they do not need the validation of a banking entity for this type of purchase and sale operation.
The members or users of this cryptocurrency network are in charge of confirming the operations registering them automatically in the network’s public accounting book. This process is recognized as financial decongestion, managing to generalize finance worldwide without depending on central banks.
Many people use cryptocurrencies as investment instruments. Where they take full advantage of the opportunity in which cryptocurrencies have an upward trend, that is why some investors decide to sell them to transfer the money that results from profit to their traditional bank account. Listed below are some of the more conventional ways of handling digital currencies in wallets:
- Using any Exchange to exchange cryptocurrencies
- Moving tokens from one beneficiary to another
- Withdrawing through a crypto ATM.
Even if you want to transfer your digital currencies from one wallet to another, you can also move from the wallet app, where you only need the new wallet’s address to complete the operation.
Blockchain does not handle customer service
It is important to emphasize this fascinating aspect. Therefore the blockchain platform does not have customer service in any wrong operation.
When operating with this type of currency, this is one of the inconveniences if the resources do not handle properly; it is necessary to be cautious and attentive when carrying out any transaction with cryptocurrencies.
It could be considered one of the cons that, unlike the financial entities that intervene, can help solve any inconvenience generated in an economical operation.
The Exchange connects buyers and sellers of crypto.
Exchanges serve as a bridge between buyers and sellers who carry out operations with cryptocurrencies. These use different methods or forms of payment, where the percentage for negotiation that corresponds to the Exchange can pay with cryptocurrencies with any active cryptocurrency depending on the preference of the same; you can even buy cryptocurrencies with legal tender currencies such as the dollar. Some of the most used exchanges are Binance, Coinbase, and Gemini.
Conclusion
We are facing a technological era that does not stop; investors use more and more tools and strategies to obtain economic benefits without using intermediaries but to do so directly with those involved in the transactions.
It promotes in a certain way the elimination of intermediary chains in financial transactions, such as those carried out by banking entities.
